Tokyo and Washington coordinated currency sales for the first time since 2011 to curb the yen’s slide to 40-year lows.
Japan’s finance minister will confirm Monday that Tokyo and Washington jointly intervened in currency markets, selling up to $58.97 billion to support the yen. The move marks the first coordinated effort since 2011 and follows the yen’s drop to its weakest level against the dollar since 1986.
The Bank of Japan’s data suggests the intervention occurred during New York trading hours Thursday. While the BOJ kept policy steady Friday, it signaled a likely rate hike soon, aiming to narrow the rate gap driving dollar strength. US Treasury yields, a shared concern, may face renewed pressure if yen weakness persists.
Markets should brace for continued volatility in USD/JPY as authorities test the durability of the yen’s bounce. The intervention reflects broader concerns over currency stability and its impact on bond markets and Japanese assets.